BEFORE: Mixed Use Income Property

Market Value was 700K / Sold for Development Value at 1.5M

AFTER: 12 Residential Units/4k SF of Retail
Fully absorbed Finished Value is 8.5M

Knowing available Future Value is the only way to garner part of it at disposition!

Case Study: 256 Park Street, Montclair, New Jersey

Ground up Development / Mixed Use Urban Infill / Land Repurpose

This 20,000 SF site is beautifully located in one of the most sought commercial enclaves in the Township of Montclair in the state of NJ. In both residential and commercial categories vacancy rates are below 2% and the Watchung Train Station, providing direct service into NYC Penn Station, is an exceptional Income and Value Catalyst.

We saw that the subject was being grossly under-utilized and before contacting the owner performed a full Added Value Analysis through the within zoning use range. We fully vetted and supported all four primary use categories to the extent allowed within Zoning:

  • Owner User Value
  • Investment Value
  • Development Value (Partial and or Ground Up)
  • Assembled Development Value

It was determined that Ground up Development Value was the most favorable available Added Value Strategy. (This strategy defined the offering but to extend the buyer pool other Added Value Strategies were vetted and supported as part of the marketing offering.)


To confirm our findings a Preliminary Approval Pack (PAP) was generated which included:

  • Elevation renderings guided by Historic Watchung Plaza architecture
  • Site Plan
  • Parking Requirement Analysis
  • Affordable Housing Obligation Analysis
  • Impervious Surface Analysis
  • Abridged Environmental Impact Study
  • Variable Return Analysis Using best case Res and Commercial Yields

The PAP was polished with some Macro Elements:

  • Environmental Contamination Mitigation/Remediation Strategy
  • Knowledge of current board and council variance tolerances
  • Guidance from study of Master Plan intent
  • Study of prior public opposition for similar projects
  • Study of prior approvals

The PAP was presented to township and Historic Preservation. Our findings where confirmed. Immediately thereafter, owner granted us a meeting to present our findings. We were awarding the listing and marketing materials derived from the PAP were produced and distributed.

Mr. Liem, our Seller Client, enjoyed closing proceeds that were more than 2 times greater than the at that time Current Investment Value!

The purpose of our intensive Valuation Due Diligence was to conclusively define Future Value and put our Seller Client in control of the negotiation process and by extension …. the Selling Process.

This methodology obtained proceeds for our Seller Client comprised of Current Market Value + a healthy percentage of the Future Development Value… no cost to the seller.